2009-02-23
The Federal Trade Commission (FTC) Commissioner Jon Leibowitz said
he believes the Obama Administration will do more to stop brand-name
pharmaceutical companies from paying generic drugmakers to delay the
delivery of lower-cost versions of medications to the market. Under
so-called "pay-for-delay" settlements, both parties benefit because the
generic companies are paid to do nothing while brand-name drugmakers
make more money for longer periods of time.
Leibowitz indicated that the FTC will take a two pronged approach to
stopping these settlements. First, the agency will challenge the most
anti-competitive settlements in court, and second, it will support
legislation against such deals. In addition, Senators Herb Kohl (D-WI)
and Chuck Grassley (R-IA) recently reintroduced legislation
that would prohibit the settlements. House Energy and Commerce Chair
Henry Waxman (D-CA.) plans to reintroduce the House version of the
legislation soon.
ASH will continue to monitor this issue and provide updates as more information becomes available.
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